At present, Secondary Re-bar sales are weak on the ground of low buying from end-user and upcoming festival season.
Secondary Re-bar market is not in a good situation because of the continuous fall in demand of finished Long product. Although, manufacturers have increased the offer prices last week by almost INR 700-1,000/MT in central, western and northern market but the prices re-bound from the increased level owing to low buying.
In Raipur (central India), India’s one of the largest Sponge iron market, few trades are happening in the market at very low prices owing to weak demand. Re-bar prices have fallen by almost INR 1,000/MT in the last 1-week.
In western India, which is Scarp based market, Re-bar prices in Mumbai & Jalna have corrected marginally owing to shortage of material. Re-bar mills have been running on single shift from the last 1-month, which bound the prices to correct further.
In southern India, viability of Re-bar increases from Hyderabad to Chennai owing to lower prices in Hyderabad. It is almost INR 500/MT cheaper than Chennai after delivered to Hyderabad.
In northern India, Re-bar prices are volatile owing to huge fluctuation in Mandi Ingot prices in the current month. In Muzaffarnagar & Jaipur, Rolling mills have cut the power for almost 4-5 hours per day since yesterday, which is uncertain. It is expected that this may support prices further.
Ingot & Re-bar (12 mm) Price Correction from 21-30 Aug, 2014
|
Market |
Region |
City |
Ingot Price |
Correction |
Re-bar Price |
Correction |
|
Sponge Based |
Central |
Raipur |
29,700 |
– 800 |
33,700 |
– 1000 |
|
Eastern |
Dugapur |
30,200 |
– 500 |
32,900 |
– 200 |
|
|
Scrap- Based |
Western |
Mumbai |
31,800 |
0 |
35,200 |
– 300 |
|
Jalna* |
31,650 |
– 350 |
34,600 |
– 400 |
||
|
Northern |
Mandi |
33,300 |
– 1,000 |
37,600 |
– 500 |
|
|
Muzzaffarnagar |
32,250 |
– 550 |
35,600 |
– 600 |
||
|
Southern |
Hyderabad |
30,200 |
– 800 |
34,000 |
– 800 |
|
|
Chennai |
31,150 |
– 150 |
36,000 |
0 |
Basic prices in INR/MT as on 30th Aug, 2014; Excise &VAT extra,
Note: Jalna*= Billet price